InterDigital Inc (IDCC)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 517,655 | 504,255 | 483,937 | 497,549 | 401,152 | 416,818 | 445,514 | 426,114 | 407,069 | 385,797 | 330,293 | 343,605 | 336,872 | 348,243 | 333,653 | 307,944 | 307,764 | 280,929 | 290,301 | 288,591 |
| Property, plant and equipment | US$ in thousands | 11,566 | 11,181 | 11,683 | 11,445 | 11,338 | 10,164 | 11,261 | 12,315 | 13,377 | 14,182 | 14,588 | 15,626 | 16,630 | 16,244 | 11,918 | 10,243 | 10,217 | 10,018 | 10,736 | 10,581 |
| Fixed asset turnover | 44.76 | 45.10 | 41.42 | 43.47 | 35.38 | 41.01 | 39.56 | 34.60 | 30.43 | 27.20 | 22.64 | 21.99 | 20.26 | 21.44 | 28.00 | 30.06 | 30.12 | 28.04 | 27.04 | 27.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $517,655K ÷ $11,566K
= 44.76
Interpreting the fixed asset turnover ratios of Interdigital Inc over the past eight quarters, we observed fluctuations in the efficiency of the company in generating revenue from its fixed assets.
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets. A higher ratio indicates that the company is able to generate more revenue relative to its investment in fixed assets.
In Q4 2023, the fixed asset turnover ratio was 47.52, significantly higher than the ratios of the previous quarters. This suggests that Interdigital Inc was able to generate a substantial amount of revenue relative to its investment in fixed assets during this period.
In Q2 2023, the fixed asset turnover ratio was 41.25, which was lower compared to both Q1 and Q3 2023. This indicates a slight decrease in efficiency in generating revenue from fixed assets during Q2 2023.
Overall, the trend in fixed asset turnover ratios for Interdigital Inc shows some fluctuations over the past eight quarters. The company should continue to monitor and assess its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation.
Peer comparison
Dec 31, 2023